The UK is a great place to invest in property at the moment thanks excellent projected growth. If you have decided where you want to invest it’s also important to know what you strategy is going to be. With so many different types of property to invest in there are a huge range of directions that you can go in – Dakota Murphey, in a project with SSJ Surveyors, takes a look at the smartest investments across major UK cities.
It is well-known that property prices in London have swelled considerably in recent years and there have been some suggestions that residential and commercial space in the capital is currently overpriced. While that might be true for some inner areas, it worth noting that demand for property in London is still exceptionally high and that doesn’t look like changing any time soon.
That means it’s still a smart to look at homes and office property in Outer London. It is notable that transport infrastructure changes, for example Crossrail 2, will mean it will be possible to commute more easily from other areas of the city. The Upper Lea Valley in East London is one area where lots of homes will benefit from new transport links.
With a rental yield hovering around 8 per cent, Manchester looks to be a solid investment across the board. There is huge demand for short-term lets and Manchester also has one of the largest student populations in the UK. The relatively cheap price of property means it is easier than most cities to get the capital together to invest too.
In a recent survey from the Urban Land Institute, Birmingham was named as the most investable city in the UK. As many investors have been priced out of London, Birmingham has become a very attractive option thanks to recent investment and the obvious growth potential of the city.
Business property looks to be very attractive here as many businesses are looking to Birmingham as somewhere to start or expand. With the additional business investment, we can also expect to see a growth in the residential property market as additional workers moving to the city need places to live.
Liverpool is a young city. There is a very large student population and the city has also seen an influx of young professionals in need of rented properties. Look to invest in areas close to the city centre and near to the universities as these tend to be the most popular with students. Tuebrook and Toxteth are two are that are becoming increasingly sought-after.
There was much uncertainty hanging over Scotland, especially during the referendum but that now appears to have lifted and Edinburgh’s property market is seeing the benefit. A report from property consultants CBRE named Edinburgh as the third best city in Europe to invest. The growing population of office workers suggests great potential for investing in commercial space.
Cambridge is well known as a university city so it’s no surprise that this is another place where it is smart to invest in student property. However, it’s also worth noting that Cambridge is also home to a large population of graduates in high paid but often short-term jobs. Software and bioscience are both growing areas where there are many start-ups – in fact more than 40 per cent of the working population have at least a bachelor’s degree. This means that luxury lets are very much in demand in and around the city centre.
In the East Midlands, Nottingham is undoubtedly one of the property hotspots. With two large universities there is a student population of more than 50,000 and this has also led to a strong and youthful workforce in need of rented accommodation. Investors in Nottingham should target buy-to-lets for young professionals, but also be aware that there are fantastic gains to be made from student properties.
Southampton is a very popular place to live. For many young couples and families, however, house prices are simply too high to afford to buy here. This is where investors can make their money. Average house prices are high, topping £140,000 but rental yields are even more impressive at close to 9 per cent. With great demand from younger families and city workers for good quality accommodation, many people are willing to pay a premium to rent here, even if they can’t afford to purchase.
In a recent report from Quality Formations, Sunderland was named as one of the best cities in the UK to start a business. Technology firms especially are making use of Sunderland’s excellent broadband speed. This makes commercial property here a very solid investment. The cost is currently very low but with new businesses popping up all over the city demand is growing exponentially. Office space is set to see a surge in popularity so now could be the perfect time to put your money in.